Today's Report (11/16/2021)
Low existing inventories and strong buyer demand helped push builder confidence higher for the third consecutive month even as supply-side challenges – including building material bottlenecks and lot and labor shortages – remain stubbornly persistent. Builder sentiment in the market for newly-built single-family homes moved three points higher to 83 in November, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today.
“The solid market for home building continued in November despite ongoing supply-side challenges,” said NAHB Chairman Chuck Fowke, a custom home builder from Tampa, Fla. “Lack of resale inventory combined with strong consumer demand continues to boost single-family home building.”
What is it?
The National Association of Home Builders produces a housing market index based on a survey in which respondents from this organization are asked to rate the general economy and housing market conditions.
What are the fundamental effects?
The report provides a gauge of not only the demand for housing but overall economic momentum.
How does it affect the markets?
The reaction is generally muted.
How is it formulated?
Roughly 900 members are questioned
Scale goes from 0 - 100 (0 means everyone believes conditions were poor)